Bank of England bails out Northern Rock

The governor of the Bank of England, Mervyn King, is coming under increasing criticism over his handling of the crisis.

Just two days after he said on September 12 that central banks should avoid giving the impression that they will help to salvage banks that have made bad lending decisions, the Bank provided emergency funds to Northern Rock in the biggest bail-out of a British bank in 30 years.

Economists claim that if the Bank had acted earlier, Northern Rock would have been able to avoid the